scalping ES

R

razf1

I want to trade a very simple automated scalping startegy around the pivots.

Basically, I will put buy order near support for 2 point target and similiar short orders around resistance. Initial size will be 2 contracts and will increase with profits.

what would be a good stoploss point? I was thinking risking 5 points or is this too conservative?


Thanks!
 
take the average range of the past 21 days, then use it to position above/below the previous day's High/Low as stop.
 
spectra,

No plans on automation at this time. Goal is 2 pts and out for the day. Currently trading this with 2 contracts but will add as account grows.
 
Quote from WD40:

take the average range of the past 21 days, then use it to position above/below the previous day's High/Low as stop.
More...

WD40,

Isnt that a bit excessive to put a stop of ATR(21) jus tto make 2 points. Currently that would be risking 16 points
 
Quote from razf1:

WD40,

Isnt that a bit excessive to put a stop of ATR(21) jus tto make 2 points. Currently that would be risking 16 points
More...
excessive it might seems, go do a back test and see if it makes you money.

if you are too concerned,
you can also add a time stop, say go flat at EOD.
or a technical stop, say PH, PL, etc.,
or a money stop, say 5% of your purse, etc.
 
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